Jessica has a Personal Auto Policy (PAP) providing the following coverages: • Coverage A: 250/500/100 Coverage B: $10,000/person • Coverage C: 150/300 Coverage D: $500 deductible (collision): $500 deductible (comprehensive) Under the following scenario: (1) identify which PAP coverage is at issue (ONLY enter the letter A, B, C, or D); and (2) how much Jessica's insurance company will pay. NOTE: If you believe it is excluded/not covered, enter $0, otherwise, determine the amount and enter the amount with the $. any necessary commas, and no decimal points/cents (e.g., $1,500). Failure to follow these directions will result in answers being marked incorrect. Jessica allows her friend, Chris, to borrow her car to run a quick errand. When Chris is on her way back from the store, she totally misses a stop sign and causes an accident. The other driver's brand new car is totaled, and it had a value of $26,000. Jessica car suffers $2,100 in damages, as well. NOTE: There are 2 different coverages at issue in this scenario. Answer as to Jessica's car first (coverage letter, then $ amount), then the other driver's car (coverage letter, then $ amount).
Jessica has a Personal Auto Policy (PAP) providing the following coverages: • Coverage A: 250/500/100 Coverage B: $10,000/person • Coverage C: 150/300 Coverage D: $500 deductible (collision): $500 deductible (comprehensive) Under the following scenario: (1) identify which PAP coverage is at issue (ONLY enter the letter A, B, C, or D); and (2) how much Jessica's insurance company will pay. NOTE: If you believe it is excluded/not covered, enter $0, otherwise, determine the amount and enter the amount with the $. any necessary commas, and no decimal points/cents (e.g., $1,500). Failure to follow these directions will result in answers being marked incorrect. Jessica allows her friend, Chris, to borrow her car to run a quick errand. When Chris is on her way back from the store, she totally misses a stop sign and causes an accident. The other driver's brand new car is totaled, and it had a value of $26,000. Jessica car suffers $2,100 in damages, as well. NOTE: There are 2 different coverages at issue in this scenario. Answer as to Jessica's car first (coverage letter, then $ amount), then the other driver's car (coverage letter, then $ amount).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Jessica has a Personal Auto Policy (PAP) providing the following coverages:
• Coverage A: 250/500/100
Coverage B: $10,000/person
• Coverage C: 150/300
Coverage D: $500 deductible (collision): $500 deductible (comprehensive)
Under the following scenario: (1) identify which PAP coverage is at issue (ONLY enter
the letter A, B, C, or D); and (2) how much Jessica's insurance company will pay.
NOTE: If you believe it is excluded/not covered, enter $0, otherwise, determine the
amount and enter the amount with the $, any necessary commas, and no decimal
points/cents (e.g., $1,500). Failure to follow these directions will result in answers
being marked incorrect.
Jessica allows her friend, Chris, to borrow her car to run a quick errand. When Chris
is on her way back from the store, she totally misses a stop sign and causes an
accident. The other driver's brand new car is totaled, and it had a value of $26,000.
Jessica car suffers $2,100 in damages, as well.
NOTE: There are 2 different coverages at issue in this scenario. Answer as to
Jessica's car first (coverage letter, then $ amount), then the other driver's car
(coverage letter, then $ amount).
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